#22 Proposal to Activate On-Chain Reward Mechanism (Approved)

TRON Foundation has proposed on Twitter to add a new on-chain mechanism that allows Super Representatives and Candidates to directly distribute their rewards to their voters without the need for SRs to use their own vote reward systems.

How it works

The new system will allow SRs to decide how much of their rewards can be claimed directly by voters. This is done by submitting a UpdateBrokerage contract and setting the percentage of rewards they want to go to voters.

Claiming rewards for voters is done similarly as how SRs are claiming their own rewards now. The user has to open their wallet and submit a WithdrawBalance contract and the available rewards will be sent as TRX to their own wallet.

Some implementation details:

  • The user will not be able to see how much rewards they can claim in their wallet. This calculation is done only when he submits the WithdrawBalance contract (source 1, source 2, source 3)
  • The transaction result shows how much the user has claimed
  • If users vote on multiple SRs then it is impossible to determine how much rewards they got from each SR. All rewards are put in a single value.

Impact

Approving and activating this proposal will have the following impact on the network

  • No rewards will be affected until the SR has submitted a UpdateBrokage contract and changing the percentage
  • Less transactions on the network because users will most likely not be claiming rewards every day
  • Existing wallets will need to implement WithdrawBalance contract before users can receive their rewards

Pros

  • It will be easier for new SRs to participate without having to setup their own software to reward their voters. Thereby lowering the barrier for entry.
  • The amount of transactions on the network will be lower

Cons

  • If the users are voting for multiple SRs that have activated the new rewards distribution mechanism they can no longer see how much they are receiving from each SR. Their rewards will be shown as a single reward claim.
  • The amount of transactions daily on the network will be lower and these numbers can no longer be used to promote on social media

Notes

  • Of the 27 active SRs
    • 17 (63%) are not rewarding their voters
    • 2 (7%) are not rewarding TRX but their own tokens
    • 8 (30%) are directly rewarding TRX
  • The new system will potentially benefit 30% of the currently elected SRs
  • Some SRs are dependent on transactions to account for all the rewards and have no benefit from the new mechanism

TRON Foundation provides a 50m TRX reward divided to SRs based on the amount of blocks they produced since mainnet launch after this proposal has been approved (source)

Sources